Mexico’s President, Andrés Manuel López Obrador, has announced that the state of Nuevo León will be home to the country’s electric cars, with Elon Musk choosing the northern city of Monterrey to set up his factory. Despite not revealing the investment amount, López Obrador has stated that it is a “considerable” sum and has thanked Musk for bringing Tesla to the country. The details of the investment will be made public by the company on Wednesday during its Investors Day. López Obrador also confirmed that he had spoken with Musk several times by video call to finalize the agreement.
The arrival of Tesla in Mexico began to gain attention last October when photographs of Musk in Nuevo León were made public. He visited the northern state to assess the possibility of setting up an electric car plant in Santa Catarina. Other states, such as Hidalgo, also offered to host the plant, but Nuevo León was chosen for its infrastructure and proximity to the US. The Monterrey plant will play a crucial role in Tesla’s goal of producing 20 million vehicles by 2030, making it a world leader in sales.
Mexico has a thriving automotive industry, being the seventh-largest producer of vehicles and the fifth-largest exporter in the world. The country already has several car plants and factories specializing in engine and transmission production. Tesla finished 2022 on a high note, with its income increasing by almost 60% in the fourth quarter to reach 3.7 billion dollars and its profits doubling to 12.556 billion for the year. The technology firm has set its sights on reducing costs and increasing production in 2023, with plans to produce 1.8 million electric cars this year.
Mexico’s automotive sector aligns with the global green trend toward electric cars. Audi and BMW already have production lines for electric vehicles in the country. The Mexican ecosystem has a production capacity of over five million vehicles annually. Over 90% of the light vehicles produced in Mexico are exported, with the US as the main destination.
The arrival of Tesla in Mexico has been highly anticipated and has generated a lot of excitement. The company will positively impact the region with its commitment to sustainable energy and clean transportation. The new electric car plant in Nuevo León will bring new jobs and economic opportunities and help Mexico meet its goals for reducing greenhouse gas emissions. With the world moving towards a more sustainable future, the partnership between Tesla and Mexico is a step in the right direction.
